Question 6

Taleb Cars Ltd. issued 5,000 shares of $ 30 each at a premium of $ 5 per share, payable as:

On application $ 12 (including $ 2 premium) per share

On allotment $ 13 (including $ 3 premium) per share

On first and final call $ 10 per share

Applications were received for 5,000 shares and allotment was made to all. Ameen, to whom 500 shares were allotted, failed to pay the calls.

The journal entries of application are.

What is the correct answer?

A / B / C / D

A.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Capital A/c Securities Premium A/c (Amount received for 5,000 shares)	60,000	50,000 10,000	Share Application A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium	60,000	50,000 10,000

B.

Particulares	Dr	Cr	Particulares	Dr	Cr
Application A/c Share Capital A/c (Amount received for 5,000 shares)	60,000	60,000	Bank A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium	60,000	50,000 10,000

C.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Application A/c (Amount received for 5,000 shares)	60,000	60,000	Share Application A/c Share Capital A/ Securities Premium A/c (Share application money transferred to share capital & securities Premium	60,000	50,000 10,000

D.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Capital A/c Securities Premium A/c (Amount received for 5,000 shares)	60,000	50,000 10,000	Application A/c Securities Premium A/C Share Capital A/ (Share application money& securities Premium transferred to share capital	50,000 10,000	60,000